Under the four-year deal extending from 2009 to 2012, the City Hall unit would receive a 2 percent wage increase in 2011 and a 2.25 percent raise in 2012, but no "step" raise -- or annual increase -- in 2012. DPW workers will get 2 percent wage hikes in 2011 and 2012, and no freezing of steps. Step increases amount to 3.5 to 4 percent raises for workers, Johnson said.

Union members would not receive a retroactive pay hike for 2009 and 2010. As part of the deal, CSEA agreed to allow the city to offer only MVP health insurance instead of it offering four company options. Johnson said that will result in significant savings. Many employees will pay $500 toward their health insurance costs in 2012. The city agreed to cover increases in co-payments for health care visits.

Members of the council thanked union members for making concessions. "I think it's a good proposal." Johnson said. "You don't change things overnight."